Inexpensive hardware and software leads to quick time to market – on that there is no doubt. This, in turn, allows burgeoning new business ideas, and as Rich Karlgaard (and Glenn Reynolds) surmise, small business benefits the most. Big companies move slowly to the first investment, and they are still a bit scared of open source – they are more inclined to invest in proven opportunities. Chalk up another for small business, as solid models will get eaten up just as quickly as they launched.
Keep in mind that good business models require good ideas. Good ideas come from creative, intuitive minds that understand rigor. It is that resource that requires investment, and it is that resource that is slightly more dear.
I suspect we are going to see continuing business launches as a result, and a lot more failures as a percentage of the total. Only this time, the majority won’t lose their shirts in the process, and those that can bear the risks will move on to the next superior management team.